Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt an Options Licensing Fee for Options on Certain StreetTRACKS Exchange-Traded Funds and the SPDR Dividend Exchange-Traded Fund, 72135-72137 [E5-6727]
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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Notices
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
12d2–2(d) thereunder,2 to withdraw its
common stock, no par value
(‘‘Security’’), from listing and
registration on the American Stock
Exchange LLC (‘‘Amex’’).
On November 4, 2005, the Board of
Directors (‘‘Board’’) of the Issuer
unanimously approved resolutions to
withdraw the Security from listing and
registration on Amex. The Issuer stated
that the Board is taking such action for
the following reasons: (i) The Board has
conducted a thorough review of the
Issuer’s current standing internally and
in the market and has determined that
the costs to the Issuer of public
reporting company status outweigh the
corresponding benefits; (ii) the Board
had voted to approve a plan to effect a
1 for 5,000 reverse stock split of the
Security with the purpose of bringing
the number of record holders below 300
to allow the Issuer to deregister the
Security as a class under the Act; (iii) on
September 28, 2005, the Issuer filed a
preliminary proxy statement with the
Commission to announce a special
meeting of shareholders of the Issuer
scheduled for December 19, 2005 to
seek shareholder approval of the
proposed reverse stock split; and (iv)
provided that the reverse stock split is
effected and the number of holders of
record of the Security falls below 300,
the Board has determined it to be in the
Issuer’s best interest to deregister the
Security from the Act. The Issuer stated
that it expects the Security to trade in
the over-the-counter market and quote
on the Pink Sheets following the
withdrawal of the Security from Amex.
The Issuer stated in its application
that it has met the requirements of
Amex Rule 18 by complying with all
applicable laws in effect in the
Commonwealth of Pennsylvania, in
which it is incorporated, and providing
written notice of withdrawal to Amex.
The Issuer’s application relates solely
to withdrawal of the Security from
listing on the Amex and from
registration under section 12(b) of the
Act,3 and shall not affect its obligation
to be registered under section 12(g) of
the Act.4
Any interested person may, on or
before December 20, 2005, comment on
the facts bearing upon whether the
application has been made in
accordance with the rules of Amex, and
what terms, if any, should be imposed
by the Commission for the protection of
investors. All comment letters may be
U.S.C. 78l(d).
2 17 CFR 240.12d2–2(d).
3 15 U.S.C. 78l(b).
4 15 U.S.C. 78l(g).
16:04 Nov 30, 2005
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/delist.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include the
File Number 1–07708 or;
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number 1–07708. This file number
should be included on the subject line
if e-mail is used. To help us process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/delist.shtml).
Comments are also available for public
inspection and copying in the
Commission’s Public Reference Room.
All comments received will be posted
without change; we do not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
The Commission, based on the
information submitted to it, will issue
an order granting the application after
the date mentioned above, unless the
Commission determines to order a
hearing on the matter.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.5
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6733 Filed 11–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52812; File No. SR–Amex–
2005–118]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Adopt an
Options Licensing Fee for Options on
Certain StreetTRACKS ExchangeTraded Funds and the SPDR Dividend
Exchange-Traded Fund
November 21, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
1 15
VerDate Aug<31>2005
submitted by either of the following
methods:
5 17
Jkt 208001
PO 00000
CFR 200.30–3(a)(1).
Frm 00033
Fmt 4703
Sfmt 4703
72135
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
14, 2005, the American Stock Exchange
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
Amex has designated this proposal as
one establishing or changing a due, fee,
or other charge imposed by a selfregulatory organization pursuant to
section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(2) thereunder,4 which renders
the proposal effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Amex proposes to modify its Options
Fee Schedule by adopting a per-contract
license fee for the orders of specialists,
registered options traders, firms, nonmember market makers, and brokerdealers (collectively, ‘‘Market
Participants’’) in connection with
options transactions in five new
streetTRACKS exchange-traded funds
(‘‘ETFs’’) and the SPDR Dividend ETF.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site (https://www.amex.com), at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange has entered into
numerous agreements with various
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
E:\FR\FM\01DEN1.SGM
01DEN1
72136
Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Notices
index providers for the purpose of
trading options on certain ETFs. As a
result, the Exchange is required to pay
index license fees to third parties as a
condition to the listing and trading of
these ETF options. In many cases, the
Exchange is required to pay a significant
licensing fee to the index provider that
may not be reimbursed. In an effort to
recoup the costs associated with certain
index licenses, the Exchange has
recently established per-contract
licensing fees for orders of Market
Participants that are collected on each
option transaction in certain designated
products in which such Market
Participant is a party.5
The purpose of the proposal is to
charge options licensing fees in
connection with options on the
following streetTRACKS ETFs: (1)
streetTRACKS DJ Wilshire Small Cap
ETF (symbol: DSC); (2) streetTRACKS
DJ Wilshire Large Cap ETF (symbol:
ELR); (3) streetTRACKS DJ Wilshire Mid
Cap ETF (symbol: EMM); (4)
streetTRACKS DJ Wilshire Mid Cap
Growth ETF (symbol: EMG); and (5)
streetTRACKS DJ Wilshire Mid Cap
Value ETF (symbol: EMV) (collectively,
‘‘streetTRACKS ETFs’’). In addition, the
Exchange also proposes to charge an
options licensing fee in connection with
options on the SPDR Dividend ETF
(symbol: SDY) (‘‘SPDR ETF’’).
Specifically, Amex seeks to charge an
options licensing fee of $0.10 per
contract side for each streetTRACKS
ETF option and $0.09 per contract side
for each SPDR ETF option, for the order
of a Market Participants executed on the
Exchange. In all cases, the fee would be
charged only to the Exchange member
through whom such order is placed.
Amex represents that the proposed
options licensing fees would allow the
Exchange to recoup its costs in
connection with the index license fees
for the trading of streetTRACKS ETF
and SPDR ETF options. The fees would
be collected on every Market Participant
order executed on the Exchange. The
Exchange believes that requiring the
payment of a per-contract licensing fee
in connection with streetTRACKS ETF
and SPDR ETF options by those Market
Participants that benefit from the index
license agreements is justified and
consistent with the rules of the
Exchange.
The Exchange notes that, in recent
years, it has revised a number of its fees
to better align Amex fees with the actual
cost of delivering services and reduce
5 See Securities Exchange Act Release No. 52493
(September 22, 2005), 70 FR 56941 (September 29,
2005).
VerDate Aug<31>2005
14:47 Nov 30, 2005
Jkt 208001
Amex’s subsidization of such services.6
The Exchange represents that the
implementation of this proposal is
consistent with the reduction and/or
elimination of these subsidies. Amex
believes that these fees will help to
allocate to those Market Participants
engaging in transactions in
streetTRACKS ETF and SPDR ETF
options a fair share of the related costs
of offering such options for trading.
The Exchange asserts that the
proposal provides for an equitable
allocation of fees as required by section
6(b)(4) of the Act.7 In connection with
the adoption of options licensing fees
for streetTRACKS ETF and SPDR ETF
options, the Exchange notes that
charging the options licensing fees,
where applicable, to all Market
Participant orders, except for customer
orders, is reasonable given the
competitive pressures in the industry.
Accordingly, the Exchange seeks,
through this proposal, to better align its
transaction charges with the cost of
providing trading products.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 8 in general, and
furthers the objectives of section 6(b)(4)
of the Act 9 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
6 See, e.g., Securities Exchange Act Release No.
45360 (January 29, 2002), 67 FR 5626 (February 6,
2002); Securities Exchange Act Release No. 44286
(May 9, 2001), 66 FR 27187 (May 16, 2001).
7 Section 6(b)(4) of the Act states that the rules of
a national securities exchange must ‘‘provide for the
equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and
other persons using its facilities.’’ 15 U.S.C.
78f(b)(4).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00034
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to section
19(b)(3)(A)(ii) of the Act 10 and Rule
19b–4(f)(2) 11 thereunder because it
establishes or changes a due, fee, or
other charge imposed by the Exchange.
At any time within 60 days of the filing
of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2005–118 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–Amex–2005–118. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commissions
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
10 15
11 17
E:\FR\FM\01DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 19b–4(f)(2).
01DEN1
Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Notices
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of Amex. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2005–118 and
should be submitted on or before
December 22, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6727 Filed 11–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52837; File No. SR–Amex–
2005–056]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Granting Approval of a Proposed Rule
Change and Amendment No. 1 Thereto
Relating to the Requirement That
Registered Options Traders May Only
Sign on to Auto-Ex for ETFs Traded by
the Same or Adjoining Specialists and
Shall Sign on to Auto-Ex for a
Maximum of Fifteen ETFs
November 25, 2005.
On May 23, 2005, the American Stock
Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to provide that Registered
Options Traders (‘‘ROTs’’) may only
sign on to Auto-Ex 3 for a maximum of
fifteen Portfolio Depository Receipts,
Index Fund Shares, and Trust Issued
Receipts (collectively, ‘‘ExchangeTraded Funds’’ or ‘‘ETFs’’) and only if
such ETFs are traded by the same or
adjoining specialists for a maximum of
three contiguous panels (i.e., electronic
order book work stations).4 On
September 13, 2005, the Exchange filed
Amendment No. 1 to the proposed rule
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Auto-Ex is the Exchange’s automated execution
system.
4 The Exchange stated that each panel has one
specialist assigned to it and that numerous ETFs
may be traded on each panel.
1 15
VerDate Aug<31>2005
14:47 Nov 30, 2005
Jkt 208001
change.5 The proposed rule change and
Amendment No. 1 were published for
comment in the Federal Register on
September 30, 2005.6 The Commission
received no comments on the proposal.
This order approves the proposed rule
change, as amended.
Amex Rule 958(c) and Amex Rule
958(c)–ANTE currently require ROTs to
make competitive bids and offers
necessary to contribute to the
maintenance of a fair and orderly
market and to engage, to a reasonable
degree, in dealings for their own
accounts when there exists a lack of
price continuity and a temporary
disparity between the supply and
demand of ETFs. As part of their market
making activities in ETFs, ROTs may
sign on to Auto-Ex.
The proposed rule change would
amend Amex Rule 958, Commentary
.10, and Amex Rule 958–ANTE,
Commentary .09, to state that, if an ROT
logs on to Auto-Ex for ETFs, the ROT
would only be permitted to log on to
Auto-Ex for ETFs traded on the same or
contiguous panels, i.e., ETFs traded by
the same or adjoining specialists, for a
maximum of three contiguous panels.
The proposal also would limit an ROT
to trading in a maximum of fifteen ETFs
while signed on to Auto-Ex.7 A Senior
Floor Official would be permitted to
modify these restrictions if he or she
determines that an ROT is able to
appropriately fulfill his obligations to
the market due to the level of activity in
the ETFs and their proximity.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange 8 and, in particular, the
requirements of section 6(b) of the Act 9
and the rules and regulations
thereunder. Specifically, the
Commission finds that the proposal is
consistent with section 6(b)(5) of the
Act,10 in that it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
5 See Form 19b–4 dated September 13, 2005,
which replaced the original filing in its entirety
(‘‘Amendment No. 1’’).
6 Securities Exchange Act Release No. 52505
(September 23, 2005), 70 FR 57226.
7 Although ETFs are traded on NETS (New Equity
Trading System) and not ANTE (Amex New
Trading Environment), Amex Rule 958–ANTE
applies to ETFs.
8 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00035
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72137
principles of trade, and, in general, to
protect investors and the public interest.
In exchange for receiving certain
benefits for carrying out their duties as
market makers, ROTs have affirmative
obligations, one of which is
incorporated in current Amex Rule
958(c) and Amex Rule 958(c)–ANTE,
which require ROTs to make
competitive bids and offers as
reasonably necessary to contribute to
the maintenance of a fair and orderly
market. The Exchange believes that, in
order to make competitive bids and
offers in an ETF, ROTs must be present
in the crowd near the specialist panels
for such ETF. ROTs logged on to AutoEx are entitled to receive executions at
the specialist’s quote but are not
currently required to be present in the
crowd. If an ROT is logged onto AutoEx panels throughout the trading floor,
the ROT is less likely to be physically
present in the trading crowd for a
particular ETF, thus making it less
likely that the ROT is able to make
competitive bids and offers in such ETF
because, in order to make competitive
bids and offers, a ROT must be
physically present in the trading crowd
near the specialist panel for that ETF.
The proposed rule change, by limiting
the ROTs ability to log on to Auto-Ex to
a maximum of three contiguous Auto-Ex
panels, would confine the ROT to one
area of the floor, thus encouraging the
ROT to remain in the trading crowd for
a particular ETF that such ROT is
entitled to receive automatic executions
at the specialist’s quote. In this regard,
the Commission believes that the
proposed rule change should help
ensure that ROTs fulfill their market
maker obligations to make competitive
bids and offers.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,11 that the
proposed rule change (SR–Amex–2005–
056), as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6728 Filed 11–30–05; 8:45 am]
BILLING CODE 8010–01–P
11 15
12 17
E:\FR\FM\01DEN1.SGM
U.S.C. 78f(b).
CFR 200.30–3(a)(12).
01DEN1
]]>Agencies
[Federal Register Volume 70, Number 230 (Thursday, December 1, 2005)]
[Notices]
[Pages 72135-72137]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6727]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52812; File No. SR-Amex-2005-118]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Adopt an Options Licensing Fee for Options on Certain StreetTRACKS
Exchange-Traded Funds and the SPDR Dividend Exchange-Traded Fund
November 21, 2005.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 14, 2005, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. Amex has
designated this proposal as one establishing or changing a due, fee, or
other charge imposed by a self-regulatory organization pursuant to
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Amex proposes to modify its Options Fee Schedule by adopting a per-
contract license fee for the orders of specialists, registered options
traders, firms, non-member market makers, and broker-dealers
(collectively, ``Market Participants'') in connection with options
transactions in five new streetTRACKS exchange-traded funds (``ETFs'')
and the SPDR Dividend ETF.
The text of the proposed rule change is available on the Exchange's
Internet Web site (https://www.amex.com), at the Exchange's principal
office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange has entered into numerous agreements with various
[[Page 72136]]
index providers for the purpose of trading options on certain ETFs. As
a result, the Exchange is required to pay index license fees to third
parties as a condition to the listing and trading of these ETF options.
In many cases, the Exchange is required to pay a significant licensing
fee to the index provider that may not be reimbursed. In an effort to
recoup the costs associated with certain index licenses, the Exchange
has recently established per-contract licensing fees for orders of
Market Participants that are collected on each option transaction in
certain designated products in which such Market Participant is a
party.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 52493 (September 22,
2005), 70 FR 56941 (September 29, 2005).
---------------------------------------------------------------------------
The purpose of the proposal is to charge options licensing fees in
connection with options on the following streetTRACKS ETFs: (1)
streetTRACKS DJ Wilshire Small Cap ETF (symbol: DSC); (2) streetTRACKS
DJ Wilshire Large Cap ETF (symbol: ELR); (3) streetTRACKS DJ Wilshire
Mid Cap ETF (symbol: EMM); (4) streetTRACKS DJ Wilshire Mid Cap Growth
ETF (symbol: EMG); and (5) streetTRACKS DJ Wilshire Mid Cap Value ETF
(symbol: EMV) (collectively, ``streetTRACKS ETFs''). In addition, the
Exchange also proposes to charge an options licensing fee in connection
with options on the SPDR Dividend ETF (symbol: SDY) (``SPDR ETF'').
Specifically, Amex seeks to charge an options licensing fee of $0.10
per contract side for each streetTRACKS ETF option and $0.09 per
contract side for each SPDR ETF option, for the order of a Market
Participants executed on the Exchange. In all cases, the fee would be
charged only to the Exchange member through whom such order is placed.
Amex represents that the proposed options licensing fees would
allow the Exchange to recoup its costs in connection with the index
license fees for the trading of streetTRACKS ETF and SPDR ETF options.
The fees would be collected on every Market Participant order executed
on the Exchange. The Exchange believes that requiring the payment of a
per-contract licensing fee in connection with streetTRACKS ETF and SPDR
ETF options by those Market Participants that benefit from the index
license agreements is justified and consistent with the rules of the
Exchange.
The Exchange notes that, in recent years, it has revised a number
of its fees to better align Amex fees with the actual cost of
delivering services and reduce Amex's subsidization of such
services.\6\ The Exchange represents that the implementation of this
proposal is consistent with the reduction and/or elimination of these
subsidies. Amex believes that these fees will help to allocate to those
Market Participants engaging in transactions in streetTRACKS ETF and
SPDR ETF options a fair share of the related costs of offering such
options for trading.
---------------------------------------------------------------------------
\6\ See, e.g., Securities Exchange Act Release No. 45360
(January 29, 2002), 67 FR 5626 (February 6, 2002); Securities
Exchange Act Release No. 44286 (May 9, 2001), 66 FR 27187 (May 16,
2001).
---------------------------------------------------------------------------
The Exchange asserts that the proposal provides for an equitable
allocation of fees as required by section 6(b)(4) of the Act.\7\ In
connection with the adoption of options licensing fees for streetTRACKS
ETF and SPDR ETF options, the Exchange notes that charging the options
licensing fees, where applicable, to all Market Participant orders,
except for customer orders, is reasonable given the competitive
pressures in the industry. Accordingly, the Exchange seeks, through
this proposal, to better align its transaction charges with the cost of
providing trading products.
---------------------------------------------------------------------------
\7\ Section 6(b)(4) of the Act states that the rules of a
national securities exchange must ``provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities.'' 15
U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \8\ in general, and furthers the
objectives of section 6(b)(4) of the Act \9\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
section 19(b)(3)(A)(ii) of the Act \10\ and Rule 19b-4(f)(2) \11\
thereunder because it establishes or changes a due, fee, or other
charge imposed by the Exchange. At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-Amex-2005-118 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-Amex-2005-118. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commissions Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference
[[Page 72137]]
Room. Copies of the filing also will be available for inspection and
copying at the principal office of Amex. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-Amex-2005-118 and should be submitted on
or before December 22, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-6727 Filed 11-30-05; 8:45 am]
BILLING CODE 8010-01-P
